The Beard Company Announces 2010 Operating Results
OKLAHOMA CITY, May 9, 2011 /PRNewswire/ -- The Beard Company (Pink Sheets: BRCO) ("Beard" or the "Company") today announced its 2010 operating results.
Operating Results. For the twelve months ended December 31, 2010, the Company reported a loss from continuing operations of $2,595,000, or $0.13 per diluted share, compared with earnings from continuing operations of $3,494,000, or $0.17 per diluted share, in the year ended December 31, 2009. The loss attributable to common shareholders, after losses attributable to discontinued operations and adjustments attributable to non-controlling interests, totaled $2,840,000, or $0.14 per diluted share, in 2010, versus net earnings of $2,863,000, or $0.13 per diluted share, in 2009. Revenues increased to $785,000 in 2010, compared with $463,000 in the previous year. The results for 2010 are unaudited, whereas the 2009 results were audited.
A comparison of 2010 and 2009 results is misleading, since results for 2009 benefited from (1) a $4,894,000 gain from the sale of our remaining interest in the McElmo Dome CO2 Unit and (2) an $832,000 gain on the Visa litigation settlement. Our 2010 results reflected an operating loss of $2,099,000, compared with an operating loss of $1,053,000 in 2009. The operating loss in the Oil & Gas Segment increased $365,000 in 2010, reflecting costs associated with the early ramp-up stage of the Dilworth Field, while the operating profit in the CO2 Segment decreased $290,000, and corporate overhead increased $448,000.
"As a result of the 2010 loss, our shareholders' deficiency increased from ($24,000) at year-end 2009 to ($2,743,000) at year-end 2010," stated Herb Mee, Jr., Beard's President. "Our working capital also decreased, going from $519,000 at year-end 2009 to ($2,511,000) at year-end 2010. Total debt, including debt of discontinued operations, increased from $2,738,000 at year-end 2009 to $4,305,000 at year-end 2010. Since we have temporarily suspended our duty to file reports with the Securities and Exchange Commission (the 'SEC'), our 2010 financials, as indicated above, were not audited. If they had been audited, our auditors would undoubtedly have included a 'going concern' qualification in their opinion."
"On the bright side, results for the fourth quarter of 2010 reflected positive improvement over the comparable 2009 quarter. Revenues increased $248,000 to $299,000, the operating loss decreased $1,000 to $392,000, the loss from continuing operations decreased $167,000 to $514,000, and the loss attributable to common shareholders decreased $413,000 to $437,000," Mee concluded.
About The Beard Company
The Beard Company creates, acquires, and/or invests in businesses, primarily related to natural resources, that management believes have high growth and/or above-average profit potential and can enhance shareholder value. The Company is involved in oil and gas activities and in minerals exploration and development through its Geohedral investment.
The Company is headquartered in Oklahoma City and its common stock trades under the symbol "BRCO".
Forward-Looking Statements
This document may include statements that constitute "forward-looking" statements, usually containing the words "believe", "estimate", "project", "expect", "anticipate", or similar expressions. Forward-looking statements inherently involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, the Company's ability to secure capital to fund current operations; future trends in commodities prices; financial, geological or mechanical difficulties affecting the Company's or Geohedral's planned geological work programs; uncertainties surrounding estimates of mineralized material; and other risks associated with our business. By making these forward-looking statements, we undertake no obligation to update these statements for revisions or changes in the future.
For Additional Information, Please Contact:
Herb Mee, Jr., President, at (405) 842-2333 or via email at [email protected]
(Financial Highlights Follow)
THE BEARD COMPANY AND SUBSIDIARIES |
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Balance Sheets |
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(Unaudited) |
(Audited) |
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December 31, |
December 31, |
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Assets |
2010 |
2009 |
||||
Current assets: |
||||||
Cash and cash equivalents |
$ 98,000 |
$ 629,000 |
||||
Accounts receivable, less allowance for doubtful |
||||||
receivables of $68,000 in 2010 and $31,000 in 2009 |
1,400,000 |
1,044,000 |
||||
Inventories |
63,000 |
48,000 |
||||
Prepaid expenses and other assets |
78,000 |
139,000 |
||||
Assets of discontinued operations held for resale |
750,000 |
885,000 |
||||
Total current assets |
2,389,000 |
2,745,000 |
||||
Restricted certificate of deposit |
50,000 |
50,000 |
||||
Note and other long-term receivables |
225,000 |
300,000 |
||||
Investments and other assets |
89,000 |
299,000 |
||||
Property, plant and equipment, at cost, based on the successful |
||||||
efforts method of accounting for oil and gas properties |
2,423,000 |
1,364,000 |
||||
Less accumulated depreciation, depletion and amortization |
425,000 |
346,000 |
||||
Net property, plant and equipment |
1,998,000 |
1,018,000 |
||||
Intangible assets, at cost |
38,000 |
75,000 |
||||
Less accumulated amortization |
32,000 |
72,000 |
||||
Net intangible assets |
6,000 |
3,000 |
||||
$ 4,757,000 |
$ 4,415,000 |
|||||
Liabilities and Shareholders' Equity (Deficiency) |
||||||
Current liabilities: |
||||||
Trade accounts payable |
$ 2,624,000 |
$ 1,015,000 |
||||
Accrued expenses |
184,000 |
273,000 |
||||
Short-term debt - related entities |
272,000 |
- |
||||
Short-term debt |
1,075,000 |
- |
||||
Current maturities of long-term debt |
81,000 |
32,000 |
||||
Liabilities of discontinued operations held for resale |
664,000 |
542,000 |
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Total current liabilities |
4,900,000 |
1,862,000 |
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Long-term debt less current maturities |
236,000 |
304,000 |
||||
Long-term debt - related entities |
2,054,000 |
1,971,000 |
||||
Other long-term liabilities |
310,000 |
302,000 |
||||
Shareholders' equity (deficiency): |
||||||
Convertible preferred stock of $100 stated value; |
||||||
5,000,000 shares authorized; 27,838 shares issued |
||||||
and outstanding |
889,000 |
889,000 |
||||
Common stock of $.00033325 par value per share; |
||||||
30,000,000 authorized; 20,103,889 and 19,971,622 shares |
||||||
issued and outstanding in 2010 and 2009, respectively |
7,000 |
7,000 |
||||
Capital in excess of par value |
42,901,000 |
42,780,000 |
||||
Accumulated deficit |
(43,913,000) |
(41,073,000) |
||||
Accumulated other comprehensive income |
24,000 |
24,000 |
||||
Total shareholders' equity (deficiency) attributable |
||||||
to The Beard Company |
(92,000) |
2,627,000 |
||||
Noncontrolling interests |
(2,651,000) |
(2,651,000) |
||||
Total shareholders' equity (deficiency) |
(2,743,000) |
(24,000) |
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Commitments and contingencies |
||||||
$ 4,757,000 |
$ 4,415,000 |
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THE BEARD COMPANY |
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Results of Operations |
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For the Three Months |
For the Year |
|||||||
Ended December 31, |
Ended December 31, |
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(Unaudited) |
(Unaudited) |
(Audited) |
||||||
2010 |
2009 |
2010 |
2009 |
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Revenues |
$299,000 |
$51,000 |
$785,000 |
$463,000 |
||||
Expenses |
691,000 |
444,000 |
2,884,000 |
1,516,000 |
||||
Operating loss |
(392,000) |
(393,000) |
(2,099,000) |
(1,053,000) |
||||
Other income (expense) |
(122,000) |
(253,000) |
(573,000) |
4,609,000 |
||||
Earnings (loss) before income taxes |
(514,000) |
(646,000) |
(2,672,000) |
3,556,000 |
||||
Income tax benefit (expense) |
- |
(35,000) |
77,000 |
(62,000) |
||||
Earnings (loss) from continuing operations |
(514,000) |
(681,000) |
(2,595,000) |
3,494,000 |
||||
Earnings (loss) from discontinued operations |
77,000 |
(169,000) |
(245,000) |
(623,000) |
||||
Net earnings (loss) |
(437,000) |
(850,000) |
(2,840,000) |
2,871,000 |
||||
Amounts attributable to noncontrolling interests |
||||||||
(Income) loss from continuing operations |
- |
- |
- |
(8,000) |
||||
Net earnings (loss) attributable to |
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The Beard Company common shareholders |
($437,000) |
($850,000) |
($2,840,000) |
$2,863,000 |
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Net earnings (loss) per average common share outstanding: |
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Basic(A)(B): |
||||||||
Earnings (loss) from continuing operations |
$ (0.02) |
$ (0.03) |
$ (0.13) |
$ 0.17 |
||||
Loss from discontinued operations |
$ 0.00 |
$ (0.01) |
$ (0.01) |
$ (0.03) |
||||
Net earnings (loss) |
$ (0.02) |
$ (0.04) |
$ (0.14) |
$ 0.14 |
||||
Diluted(A)(B): |
||||||||
Earnings (loss) from continuing operations |
$ (0.02) |
$ (0.03) |
$ (0.13) |
$ 0.17 |
||||
Loss from discontinued operations |
$ 0.00 |
$ (0.01) |
$ (0.01) |
$ (0.03) |
||||
Net earnings (loss) |
$ (0.02) |
$ (0.04) |
$ (0.14) |
$ 0.14 |
||||
Weighted average common shares outstanding(A)(B): |
||||||||
Basic |
20,104,000 |
19,958,000 |
20,104,000 |
19,853,000 |
||||
Diluted |
20,104,000 |
19,958,000 |
20,104,000 |
21,164,000 |
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_________ |
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(A) Basic earnings (loss) per share are computed by dividing earnings (loss) attributable to common shareholders by the weighted |
|
average number of common shares outstanding for the period. Diluted earnings (loss) per common share reflect the potential dilution |
|
that could occur if our outstanding options and warrants were exercised (calculated using the treasury stock method) and if our preferred |
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stock were converted to common stock. Diluted loss per share from continuing operations exclude potential common shares issuable |
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upon conversion of convertible preferred stock, and on issuance upon exercise of options and warrants as the effect would be anti-dilutive. |
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(B) All share and per share numbers have been adjusted to reflect the 2-for-1 split of the Company's common stock effected on |
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November 2, 2009. |
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SOURCE The Beard Company
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